Understanding what goes into an I-956F filing and what USCIS scrutinizes is important, but understanding why some petitions get denied is critical for risk management. Recent data shows that up to 25% of I-956F petitions filed under the EB-5 Reform and Integrity Act (RIA) have faced denial. For investors committing significant capital and years to the EB-5 process, choosing a regional center with a proven track record of avoiding these pitfalls is essential.
In a recent webinar, Walter Gindin, General Counsel at CanAm Enterprises, and Min Wu, Head of Sales, discussed what causes I-956F denials and how experienced regional centers structure their filings to avoid common problems. With CanAm’s 100% USCIS project approval rate across 75+ projects (including 15 I-956F approvals under the RIA), our insights offer a roadmap for reducing risk.
Data Actually Shows About I-956F Denials
Min Wu addresses data that impacts EB-5 investor decision-making: “There has been data showing an increased percentage of projects that’s been denied under the new RIA. I think, if I remember correctly, the IIUSA data actually shows up to 25% of these projects have been denied. That’s quite concerning.”
That means one in four I-956F petitions fails to receive approval. For investors whose I-526E petitions cannot be approved until the underlying I-956F receives USCIS approval, choosing a project with a denied I-956F can result in years of delays and potential investment loss.
This statistic underscores the importance of regional center selection and the value of demonstrated track records.
Common Reasons I-956F Petitions Get Denied
Missing or Incomplete Documentation
The most straightforward cause is missing application pieces. “Certainly, if there are pieces of the application that are missing (like the capital stack or maybe there’s questions regarding the budget or the schedule) that regional center might not be able to answer in the time that USCIS affords them,” Walter explains.
The capital stack is particularly critical. Missing elements or incomplete financing information can trigger RFEs that regional centers struggle to answer within USCIS timeframes. Similarly, budget or schedule questions become problematic if regional centers can’t provide supporting documentation quickly.
Overly Complex or Novel Financing Structures
Another risk involves financing structures USCIS doesn’t readily understand. “It’s also possible that there are some financing structures that are perhaps more unique than what USCIS is used to,” Walter notes, “in terms of how the money goes in, when it goes in, how it’s raised, and what the interaction is between the NCE and the JCE.”
Regional centers sometimes attempt novel approaches to differentiate themselves. While innovation has its place, USCIS adjudicators may view unfamiliar structures with skepticism. Complex arrangements between the New Commercial Enterprise and Job Creating Entity can raise red flags if they don’t follow established patterns.
Experimental Approaches Without Proven Track Records
Some sponsors, particularly newer ones, may experiment with different methodologies for job creation calculations, capital deployment, or investor protection. While these might seem innovative, they lack demonstrated success. USCIS has limited capacity to evaluate novel approaches and may default to denial when faced with structures without precedent.
How Strong Sponsors Reduce Risk: CanAm’s Proven Approach
CanAm’s approach offers a stark contrast. Walter’s philosophy is straightforward: “We don’t try to reinvent the wheel.”
Consistent Structures Across Diverse Asset Classes
One key to avoiding denials is maintaining consistent, proven structures even across diverse project types. “Even though we have a variety of different types of projects (not everything is real estate, we have broadband and gas exploration), the asset classes change, but fundamentally, the way that we deploy that capital stays consistent,” Walter explains.
CanAm structures capital deployment “as a loan with a term, covering expenses going forward.” Rather than creating bespoke structures that might confuse USCIS, CanAm uses established mechanisms that USCIS understands and has repeatedly approved.
Decades of Proven Methodologies
Experience matters enormously. “We know what works within EB-5 after all of these years,” Walter explains. CanAm’s three-decade history provides institutional knowledge about what USCIS accepts.
“When Tom and Christine first started, there was all this pushback,” Walter acknowledges. “But over the 30 years of CanAm’s history, we know and understand what works for EB-5. We try to stick within that box even as projects change.”
Avoiding the Experimental Trap
Walter captures CanAm’s philosophy: “We don’t want to be the regional center that starts something new. We want to continue with what has been working.”
Min Wu reinforces this: “The early days of trial and error are over.” Investors work with proven methodologies that have demonstrated success.
Leveraging External Expertise
CanAm also recognizes when to bring in additional expertise. “We don’t do it all ourselves. If there’s expertise that we need or second or third opinions, we have good relationships with very experienced EB-5 attorneys, very experienced corporate attorneys that help us understand structure and put things together,” Walter explains.
This collaborative approach ensures that even CanAm’s experienced internal team consults with specialists on complex issues, providing confidence that approaches “will be successful.”
The Results: 100% USCIS Project Approval Rate
CanAm’s approach produces measurable results. “We just received our 15th I-956F approval (that’s for a very high-profile project, the Four Seasons in Telluride),” Min notes.
Those 15 I-956F approvals under the RIA represent 100% success for projects filed under the new framework. But the track record extends much further: across 75+ projects over three decades, CanAm has maintained a 100% USCIS project approval rate. Every single project has been approved.
Processing times have been encouraging. “Most of our projects are approved within four to nine months,” Min notes, significantly faster than historical averages.
Walter attributes these results to making things straightforward for USCIS: “Our job is to make them feel good about approving something because we’ve given them an application that is comprehensive, that is credible.”
What This Means for EB-5 Investors
When one in four I-956F petitions faces denial, regional center selection becomes a critical decision. Investors should evaluate potential sponsors through the lens of risk reduction:
- Does the regional center have demonstrated USCIS approvals, or are they relatively new?
- Do they use proven, consistent structures, or do they experiment?
- Can they clearly explain their capital deployment in terms USCIS understands?
- What is the regional center’s actual approval rate?
For CanAm, the answer to that final question is unambiguous: 100% across 75+ projects. When 25% of petitions face denial, choosing sponsors with perfect approval records is sound risk management.
Partner with a Regional Center with a Perfect Approval Record
Given how many petitions fail to clear this stage, choosing a regional center with a proven track record isn’t optional. CanAm Enterprises brings three decades of EB-5 experience:
- 100% USCIS project approval rate (every project we’ve sponsored has been approved)
- 15 I-956F approvals under the RIA (most approved within 4-9 months)
- 75+ projects over 30 years demonstrating sustained excellence
- $3.9 billion+ raised in EB-5 capital
- $2.5 billion+ in capital successfully returned
- 16,900+ conditional green cards and 9,300+ permanent green cards issued
Our approach reduces risk by using proven methodologies across diverse asset classes, maintaining consistent structures USCIS recognizes, and collaborating with experienced outside counsel when needed. We execute strategies with demonstrated success.
Ready to choose a regional center with a perfect USCIS approval record?
Contact our sales team today to discuss your EB-5 options and get personalized guidance on choosing projects backed by 100% approval rate and 30 years of proven experience.
Contact us at info@canamenterprises.com or +1 (212) 668-0690.
About the Contributors
Walter S. Gindin, General Counsel
Walter S. Gindin is General Counsel at CanAm Enterprises. Mr. Gindin oversees all EB-5 and corporate legal matters at CanAm and provides strategic guidance and consultation to CanAm’s executives and senior management. He earned a bachelor’s degree in economics and a master’s degree in political science from New York University. He earned his Juris Doctor (with Distinction) from the University of Iowa College of Law where he served an Editor on the Iowa Law Review. He is a member of the EB-5 Investor Committee of the American Immigration Lawyers Association (AILA).
Min Wu, Head of Sales
As the Head of Sales, Ms. Wu manages CanAm’s global sales team in Asia, India, the Middle East, South America, and the U.S. Ms. Wu focuses on the setting and execution of CanAm’s overall sales strategy by helping the team maintain and grow CanAm’s core network of institutional partners. Since joining CanAm in early 2016, Ms. Wu has worked extensively with investors and consultants worldwide. Prior to CanAm, she had more than 10 years of experience as a financial analyst and institutional sales manager. Ms. Wu is a Chartered Financial Analyst and holds FINRA Series 7 and 63 licenses.
